Amazon is set to close seven facilities across Quebec, impacting nearly 1,800 jobs due to the company's strategic shift to third-party delivery models. The closures, announced on January 22, include major warehouses and delivery centers situated in Laval and Montreal.
According to reports from Radio-Canada and other media outlets, the affected personnel will include managers and staff at sorting and delivery centers, as well as independent contractors who deliver packages using Amazon-branded vehicles. The transition to third-party logistics partners, like Intelcom, appears to be part of Amazon's broader strategy following operational reviews conducted across the province.
"This decision makes no sense, neither on business nor operational levels. Amazon, one of the best-integrated companies from click to home delivery, would hand over all its warehousing and distribution operations to third parties across Quebec?" voiced Caroline Senneville, President of the Confédération des syndicats nationaux (CSN). This condemnation captures the frustration of workers and labor leaders alike, especially following recent unionization efforts at the Laval warehouse.
Amazon's official stance claims the restructuring aims to revert to operational methods similar to those prior to 2020. Barbara Agrait, spokesperson for Amazon Canada, stated, "We have seen returning to a model of delivery by third parties supported by local small businesses, similar to what we had previously, will allow us to provide the same quality service and make even more savings for our customers long term." She emphasized the company’s commitment to affected employees, offering severance packages of up to 14 weeks of pay and support for job placement and relocation.
Despite Amazon's efforts to frame these changes as business-related, the timing raised eyebrows, especially as the Laval facility had recently voted to unionize, becoming the first unionized Amazon warehouse in Canada. The union conflict flared as negotiations faltered and proposals for wage increases hanged tenuously. Following the announcement of closures, Senator Senneville stated, "It is clear these announced closures are part of an anti-union campaign against the CSN and the Amazon employees. The implication is hard to ignore." The CSN had been actively negotiating for workers' rights, which included pay negotiations where workers demanded entry salaries of CAD 26 per hour.
The reaction from provincial officials has been mixed, with Premier François Legault caught off guard by the announcement, learning about it through media reports. He expressed sympathy for the affected workers but noted, "This is a private company’s decision; I cannot begin to manage their affairs." Such statements were met with criticism from opposition leaders who condemned the government’s apparent indifference and insensitivity to the plight of those losing their jobs.
Legault’s comments about hockey and juice before addressing the layoffs only fueled backlash, with critics labeling his response as ineffectual and lacking awareness. Leaders from Quebec’s opposition parties suggested calls for boycotts of Amazon and urged the government to reflect on its reliance on multinational corporations.
"The closure of these facilities is just one of many examples of how these wealthier corporations navigate regulations and labor laws, often at the expense of workers' rights," lamented Alexandre Boulerice, deputy leader of the New Democratic Party (NDP). He stressed the importance of addressing the issue effectively to protect workers from what he described as predatory corporate tactics.
Looking beyond the immediate concerns, the current events signal shifting dynamics within the labor market as multinationals like Amazon grapple with unionization efforts. It reflects the increasing tension between employee rights and corporate practices, pointing to the necessity for legislative action to bolster protections for workers facing similar corporate decisions.
While Amazon insists its closures are not linked to union activities, labor experts and analysts point to the timing and the company's historical anti-union stance as potentially relevant factors. Only time will tell how this situation will resolve, but for now, nearly 1,800 employees face uncertain futures amid significant operational reshuffling.
The response from the public and the government over the coming weeks will be telling of how such corporate shifts are navigated within the framework of worker rights and protection. Amidst this changing scenery, employees of Amazon find themselves at the crossroads of labor relations and economic strategies shaped by corporate giants.